Monday, March 12, 2012


The market seems like it started a zig zag correction but it is still too early to tell. Going by waves one could argue for the start of a 5 wave up for the final 5th on the B wave, so it is impossible to tell. It's been now 9 days since the market reached the 1378 top and bulls are trying hard to make it past that level, however I doubt we'll see another 9 sessions doing the same thing. So I am just patiently waiting.. and waiting. I sold my SDS positions today to lock in some profit and have margin available should the VIX continue to make an extreme low (it is already trading outside its Bollinger Band but could still go lower should the market have another 5th wave in it). My one mistake with this trade was not raising my stop loss to break even after I first took profit, I got greedy so next time I'll stick to the trading rules.

Trades were logged as follows:


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